Fire and theft insurance
If you’ve ever needed to claim insurance of any kind, you already know it can be a painstaking experience. From filling out seemingly a thousand forms to inspections of damage, to filing police reports and more. It really depends on the insurer and what they expect from you when making a claim, but when it comes to car insurance, apart from being a laborious process, it can sometimes be a slightly more emotional time. After all, it’s your friend on wheels, your escape from work and home, apart from your bed, you spend so much time in your car. What’s more, you’ve spent so much money on your car, you don’t want anything to go wrong with it, do you?
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Basic VS Comprehensive insurance for fire and theft:
Fire and theft insurance is pretty specific. What should I look out for?
There are generally two ways of purchasing fire and theft insurance:
1. You have basic third party property insurance and you purchase fire and theft as an additional feature, or
2. You buy the comprehensive option, which automatically covers you for fire and theft insurance.
Most people say, ‘Fire and theft? It won’t happen to me. It always happens to other people.’ Well, what happens in the next 20 seconds, 2 minutes or twenty days from now is completely out of your power. The reality? Is that if can happen to you, so why take the risk? Just a few more dollars a week, a month, a year to save you hours of heartache and headache. No one wants to scrounge around to pay thousands of dollars back in their car repayments or for damage they weren't insured for.
To compare providers of car insurance, check out Mozo’s car insurance deal finder.
Do’s and don’ts of choosing fire and theft insurance
When it comes to fire and theft insurance, there’s no right or wrong option, but Mozo certainly does recommend that you at least cover yourself for it. Below is a general exploration around the different things you need to consider when thinking about buying fire and theft insurance for your car.
Check: Is the market value of my car accurate?
Most insurers, if your claim qualifies, will only credit you the market value of your car. And in some cases, insurers will cap it to $5000, and others up to $10,000. So if you want more protection, it pays to shop around, and make a specific effort to pick up the phone and make an actual enquiry with a consultant of whatever car insurance company tickles your fancy.
If they do have a capping of up to $10,000 for fire and theft, and your car is worth more or the damage caused to your car may be more than the value insured, then you may want to ask if it’s possible to pay extra, above and beyond their standard fire and theft insurance extras. If it’s not possible, then you need to reconsider the value of your car. For example, if second hand, did you pay too much for it?
Compare compare compare
It’s really the only way you’re going to find yourself with the right car insurance for your budget. Although the internet connects us to a wealth of product information when it comes to car insurance products, there could be something we’re missing or not understanding.
It pays to call and double check exactly what we’re needing and purchasing before we commit to a product. Did you think that monthly amount covered fire and theft? You better make sure it does before it’s too late.
Buy the first fire and theft car insurance you see.
As both you and I are extremely time-poor in this fast-paced world with little time to do research for the things that matter most, although it may be very tempting to go ahead and purchase the first car insurance you read about, it will give you very little in return. Why? Because it may be $20 more expensive per month than the next one you read about for the same car. Isn’t it worth looking around first?
That's exactly why Mozo’s here to help! Try our car insurance comparison tool to see if you can get the cover for all the things you expect in your car insurance at the right price. It only takes a couple of minutes and saves you potentially hours searching online or calling around on the phone.
Rely on online comparisons alone
It’s really wonderful that we can rely on online comparisons and web information as we do our general day to day research for products and services we’re interested in purchasing. But we probably shouldn’t rely on what we find online alone.
There could be new products that are not yet listed on insurers websites that could suit your personal situation better, or features and products that you’re unaware of with existing ones that you need clarification on, so it pays to set some time aside and give your insurance company a call. You never know what you could be missing out on.
Still not sure which direction to take?
Sometimes reading about other people’s experiences when it comes to purchasing fire and theft as an option is the best way to settle on the right product. Mozo has a great and very personal people’s review section on car insurance here.